Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1430
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       Appropriations Subcommittee on Agriculture, Environment, and
       General Government (Burgess) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 110 - 195
    4  and insert:
    5  expected to be recouped. If an insurer elects not to recoup, the
    6  amount recorded as an asset must be reduced to zero.
    7         2. Unless an insurer elects not to recoup, assessments
    8  levied under subparagraph (f)2. are paid after policy surcharges
    9  are collected so that the recognition of assets is based on
   10  actual premium written offset by the obligation to the
   11  association. If an insurer elects not to recoup, no asset shall
   12  be recorded.
   13         (f)1. The association, office, and insurers remitting
   14  assessments pursuant to paragraph (a) or paragraph (e) must
   15  comply with the following:
   16         a. In the order levying an assessment, the office shall
   17  specify the actual percentage amount to be advanced to the
   18  association and thereafter collected uniformly from all the
   19  policyholders of insurers subject to the assessment and the date
   20  on which the assessment year begins, which may not begin before
   21  90 days after the association board certifies such an
   22  assessment.
   23         b. Insurers shall make an initial payment to the
   24  association before the beginning of the assessment year on or
   25  before the date specified in the order of the office. Each
   26  insurer shall have at least 30 days’ written notice as to the
   27  date on which the initial assessment payment is due and payable.
   28  The association may request that the order issued by the office
   29  authorize insurers to remit the advance payments in four
   30  quarterly installments throughout the assessment year.
   31         c. Insurers that have written insurance in the calendar
   32  year before the year in which the assessment is certified by the
   33  board shall make payments an initial payment based on the direct
   34  written premium in this state for the classes protected by the
   35  account from the previous calendar year as set forth in the
   36  insurer’s annual statement, multiplied by the uniform percentage
   37  of premium specified in the order issued by the office. Insurers
   38  that have not written insurance in the previous calendar year in
   39  any of the lines under the account which are being assessed, but
   40  which are writing insurance as of, or after, the date the board
   41  certifies the assessment to the office, shall pay an amount
   42  based on a good faith estimate of the amount of direct written
   43  premium anticipated to be written in the subject lines of
   44  business for the assessment year, multiplied by the uniform
   45  percentage of premium specified in the order issued by the
   46  office.
   47         d. Insurers shall file one or more a reconciliation reports
   48  report with the association which indicate indicates the amount
   49  of the initial payment to the association before the assessment
   50  year, whether such amount was based on direct written premium
   51  contained in a previous calendar year annual statement or a good
   52  faith projection, the amount actually collected during the
   53  assessment year, and such other information contained on a form
   54  and schedule adopted by the association and provided to the
   55  insurers in advance. If the insurer collected from policyholders
   56  more surcharges than the amount initially paid, the insurer
   57  shall pay the excess amount to the association. If the insurer
   58  collected surcharges from policyholders in an amount that which
   59  is less than the amount initially paid to the association, the
   60  association shall credit the insurer that amount against future
   61  assessments. Such payment reconciliation report, and any payment
   62  of excess amounts collected from policyholders, shall be
   63  completed and remitted to the association within 90 days after
   64  the end of the assessment year. The association shall send a
   65  final reconciliation report on all insurers to the office within
   66  120 days after each assessment year.
   67         e. Insurers remitting reconciliation reports under this
   68  paragraph to the association are subject to s. 626.9541(1)(e).
   69         2. For assessments required under paragraph (a) or
   70  paragraph (e), the association may use a quarterly installment
   71  method instead of the method described in sub-subparagraphs 1.b.
   72  and c. or in combination thereof based on the association’s
   73  projected cash flow. If the association projects that it has
   74  cash on hand for the payment of anticipated claims in the
   75  applicable account for at least 6 months, the board may make an
   76  estimate of the assessment needed and may recommend to the
   77  office the assessment percentage that may be collected as a
   78  quarterly assessment. The office may, in the order levying the
   79  assessment on insurers, specify that the assessment is due and
   80  payable quarterly as the funds are collected from insureds
   81  throughout the assessment year, in which case the assessment
   82  shall be a uniform percentage of premium collected during the
   83  assessment year and shall be collected from all policyholders
   84  with policies in the classes protected by the account. All
   85  insurers shall collect the assessment without regard to whether
   86  the insurers reported premium in the year preceding the
   87  assessment. Insurers are not required to advance funds if the
   88  association and the office elect to use the quarterly
   89  installment option. All funds collected shall be retained by the
   90  association for the payment of current or future claims. This
   91  subparagraph does not alter the obligation of an insurer to
   92  remit assessments levied pursuant to this subsection to the
   93  association. Notwithstanding this subparagraph, an insurer may
   94  elect not to collect from policyholders, in which case such
   95  insurer must make quarterly payments to the association equal to
   96  the amount of premium written in the previous quarter for
   97  policies in the classes protected by the account multiplied by
   98  the uniform percentage of premium set forth in the order levying
   99  the assessment. Insurers shall file one or more reconciliation
  101  ================= T I T L E  A M E N D M E N T ================
  102  And the title is amended as follows:
  103         Delete lines 16 - 25
  104  and insert:
  105         recoup advances; specifying requirements for insurers
  106         electing not to recoup; revising a requirement for
  107         information regarding assessment percentages which
  108         must be specified by the Office of Insurance
  109         Regulation in orders levying assessments; authorizing
  110         the association to request that orders levying
  111         assessments issued by the office authorize a certain
  112         installment frequency for the remittance of advance
  113         payments by insurers; revising the requirement that
  114         certain insurers make payments, rather than initial
  115         payments, on a certain basis; requiring insurers to
  116         make quarterly payments to association under certain
  117         circumstances; revising insurer